New Jersey offers multiple assistance programs to develop and sustain its small business climate. Since LLC or Limited Liability Company is the best business structure for small to mid-sized businesses, starting an LLC in New Jersey is the easiest and fastest way to establish a business in the Garden State.
So without further ado, let’s see what it takes to start an LLC in New Jersey:
Pick a Unique Business Name
New Jersey laws require an original name for a business that cannot be confused with another. They also require the name to reflect the services or products it provides. Brainstorm business name ideas that comply with the rules and conduct a search to find their availability.
New Jersey does not reserve business names. Hence, you will need to execute the remaining steps of the process quickly.
Get a Business Address
The second step requires acquiring a business address. State laws require the business address to be a physical street address within or outside the state. The address can belong to a residence, office building, or any other location as long as it isn’t a P.O. Box.
If you’re starting your business from home, get a virtual mailbox service to maintain your home address private. The virtual mailbox service may also come in handy if you travel a lot or if you plan to move your residence or office soon.
Appoint a Registered Agent
Like other states, LLCs in New Jersey requires a registered agent to handle the business documentation on their behalf. You can name any individual or a registered agent service as your business’s agent, given they fulfill the following criteria:
Must be 18 years or older
Must be a resident of New Jersey
Must be available during office hours as needed
You can name a registered agent by filing an Application with the New Jersey Division of Revenue. The registered agent must officially accept the position for this step to be successfully completed.
Submit a Certificate of Formation
Certificate of Formation or Public Records Filing for a New Business Entity is a document requiring the essential information of a business getting registered. To start an LLC in New Jersey, you must complete and submit this certificate with absolute information.
The information required by the certificate includes business name and address, business purpose, name and address of the registered agent, names and address of business members, duration of the business (it can be indefinite), and provisions for regulation of the business’s internal affairs. The certificate may also require the name and address of the person submitting it.
Once you submit the required information and get approved, your business will be legally established. However, you must note that filing this certificate yearly with updated information is a state requirement. So add a reminder in your calendar for next year to repeat this step.
Register Your Business for Tax Purposes
After your business is established, you will need to submit another similar form, the NJ –Reg with the New Jersey Division of Revenue. This second form does not require any fee. However, filing it registers your business with the New Jersey Department of the Treasury. It also ensures that your business receives all the tax notices and assists in proper tax returns.
This step must be completed within 60 days of establishing your LLC.
Obtain an Employee Identification Number
Besides registering your business with the Department of the Treasury, you need an Employee Identification Number or EIN to file your business taxes successfully. EIN is essential for hiring employees. But even if you don’t plan to hire anyone for your small business, you will still need EIN to open a bank account for your business and submit payroll information when filing taxes.
Obtaining an EIN is another step that does not require any fee. You only need to register your business with the IRS to get one.
Prepare an Operating Agreement
An operating agreement contains outlines and procedures for how a business operates. You don’t need an operating agreement to start an LLC in New Jersey, but getting one is a good idea for many reasons.
Firstly, procedures and details in the operating agreement prevent unwanted claims and requests. If you have business members who contributed to starting your business, you can detail their contributions to the business and work out profit sharing and voting rights accordingly. Secondly and more importantly, New Jersey state laws give significant value to an LLC operating agreement and settle any lawsuits against the business according to its details.
Starting making your LLC operating agreement by adding to the state’s standard operating agreement.
Bonus Step: Make a Website and Market Your Business
The above seven steps will prepare you for legally starting an LLC in New Jersey. But you still need to announce your business’s presence to your audience. For this purpose, you need to make a website. Since it has become a standard practice for audiences to search for whatever they need online, a website now plays the role of a physical store with a now open board.
While you can DIY this step, executing this step poorly can have disastrous consequences and make all the effort you put into starting an LLC in New Jersey go in vain. Building a website requires acquiring a hosting service, securing a domain name, creating an interactive layout, brainstorming appropriate color schemes, writing copy, and adding images and other media. Moreover, marketing a business includes multiple steps, such as creating digital campaigns, making social media profiles, adding and updating keywords, running ads, etc. So if you don’t have prior experience running and marketing a business online, get help with Trady.com.
Trady.com is a website-building service dedicated to trades and home service companies. Building a website with Trady.com is fast and cheap and brings exclusive features such as booking appointments, making payments, following up with clients, generating invoices, and many more! The platform also provides 360 marketing services encompassing digital, social media, and traditional marketing.
Trady.com will attract and bring you, customers, freeing you to focus on providing your services. Start with Trady.com’s 14-day free trial to discover more about its service.